COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It's a federal law and its primary purpose is to give employees and their families the right to continue group health insurance coverage after a job loss or other qualifying events.

COBRA is legislation that's meant to help protect employees during transitional times - it allows them to maintain their exact same plan they had while they were fully employed and eligible, with the same network and doctors. The only difference is the employee now pays 100% of the premiums (what was previously split by the employee and employer) plus a 2% COBRA fee.